The name Pichilemu comes from the Mapudungún words pichi (little) and lemu (forest).

Some of the first land owners of Pichilemu were the Ortúzar family. Daniel Ortúzar is known as one of the founders of the original village of Pichilemu.[9] The family of Ortúzar Cuevas, from the San Antonio de Petrel Hacienda, made a mid-century maritimedock which was as a fishing port for some years. They also built homes along the dock on what is now Ortúzar Avenue. More recently, other large land owners are Pedro Pavez Polanco and the Hacienda of San Antonio de Petrel. In 1891, during the Chilean Civil War, Daniel Ortúzar and the priest of Alcones were taken prisoners from Pichilemu through the dock.[13] During the war, the dock was burned down. After the civil war, Pichilemu got its formal name and status. President Jorge Montt and his Minister, Manuel José Irarrázabal, the city was officiallyestablished on December 22, 1891.[14]

In the 17th century, Pichilemu had 1,468 inhabitants.[20] In 1787, Pichilemu had 1,688 inhabitants.[20] In 1907, Pichilemu had 7,787 inhabitants.[21] However, the city's population progressively decreased; in 1920, it was 7,424; in 1930, it was 6,929, and in 1940, it was 6,570.[21] In 1952, the city's population increased to 7,150 inhabitants; in 1992, that figure had increased to 10,510.[21] As of the 2002 census, 12,392 people live in the town. The census recorded that 9,459 people (76.3%) are from urban places of the city, and 2,933 people (23.7%) are from rural places of the city, there are 6,440 (52.0%) men and 5,952 (48.0%) women.[22] The area of Pichilemu is 9.70 square kilometres (3.75 sq mi).[22] According to the CASEN 2002 census, 544 inhabitants (4.4%) of the population of Pichilemu live in extreme poverty compared to the average in the greater Region of O'Higgins of 4.5%, and 1,946 inhabitants (15.7%) live in mild poverty, compared to the regional average of 16.1%.[20][21][22][23]

The current Mayor of Pichilemu is Roberto Córdova.[25] The last popularly-elected mayor was Marcelo Cabrera, elected in 2008 with 42.08% of the vote,[26] who served from May 2009[27] to August 2009[28] due to legal action. The municipal council selected Córdova as the new mayor on September 9, 2009,[25] almost a year after the municipal elections. The current councilors are Aldo Polanco Contreras, Andrea Aranda Escudero, Viviana Parraguez Ulloa, Juan Cornejo Vargas and Marta Urzúa Púa.[25]

[Pichilemu] is Chile's prime surf spot, and people come from around the world to test their skills. ... [Punta de Lobos] is widely considered the best surfing in South America year-round.

—Fodor's Chile: Including Argentine Patagonia

Every October and December the International Championship of Surf takes place at La Puntilla Beach. Punta de Lobos hosts the Campeonato Nacional de Surf (English: National Surfing Championship) each summer.[15]

Pichilemu has many dark sand beaches. The water is cool year-round, though many tourists choose to swim during the summer months. Bodyboarding, surfing, windsurfing, and kitesurfing can be practiced.

The beach that is farthest north is San Antonio Beach or Main Beach (Spanish: Playa San Antonio or Playa Principal), which is found in front of the Ross Park. It is known for good surfing.[33]

Las Terrazas Beach (Spanish: Playa Las Terrazas) is the busiest beach during the summer. Many surfschools, La Ola Perfecta and Lobos del Pacífico, are found near the beach, as is the Caleta de Pescadores (English: Fisherman Creek), where fisherman sell their fish.[23] found at the south of the town and around the other side of the Puntilla, the Infiernillo Beach is found. It is used for fishing.[23] At the south of Infiernillo, Playa Hermosa is found, which is great for walking and fishing.[33]

Further south, 6 kilometres (3.7 mi) from Pichilemu, Punta de Lobos is found .It is an increasingly popular destination for tourists and specially for surfers.[34] Several surf contests are held there, including an international big-wave contest during the Chilean fall. The size of waves varies throughout the year, but large swells in fall and winter can reach heights of up to 50 feet (15 metres). It is widely considered one of the best beaches for surfing worldwide.[6][7]